Income TAX for monthly earnings over Rs 250K

COLOMBO (News 1st) - Cabinet co-spokesperson Minister Bandula Gunawardena convened a special media briefing today (November 28) to enlighten further on the tax concessions. Minister Bandula Gunawardena noted that from this day onwards the P-A-Y-E Tax will not be in effect in Sri Lanka both in the state or the private sector, however, if you earn a monthly income of more than Rs. 250,000 from any source of income, they will be liable to pay income tax. He added that when the income exceeds the first threshold he/she would have to pay tax at 6% and for the second and third thresholds which are Rs 500,000 and Rs 750,000 they would be taxed 12% and 18% respectively. Minister Bandula Gunawardena cabinet co-spokesperson: "It was at a maximum of 24% earlier. Savings income generated from fixed deposits, savings accounts and children's savings accounts will not be taxed anymore. Senior citizens will be exempted from tax. The VAT which was at 15% and NBT which was at 2% has been unified and reduced to 8%. This will come to effect from the 1st of December. All taxes charged from the IT industry have been removed. There will be development in the IT sector, the SME sector as well as the agricultural sector as a result of these tax concessions that we have granted and will come into effect during the beginning of the year. The President, the Prime Minister and cabinet ministers act in a manner to reduce costs. I had lunch from Gangaramaya. We are setting a new precedent. The President has travelled overseas without any ministers. The reports stated that there have been only 10 officials. We hope to share with you some cost details that we have been able to save after an office at the Presidential secretariat was closed." Journalist: Apart from the VAT, what other concessions are there for the general public? Minister Bandula Gunawardena noted that there will be more concessions in the future and there was a meeting between the commercial banks and other institutions with the Prime Minister and Finance Minister and the Governor of the Central Bank. He added that a loan relief program was discussed as a lot of people are in the CRIB as a result of the difficult situation. He went on to note that they have to protect the banks and the people who engage in transactions. Journalist: The manifesto says that the microloans will be cut off taking into consideration the farmers? "That will be done in the future. Everything cannot be done at once" he concluded.